With UK out of EU, New Regulatory Requirements In Place – Interim Canada-UK Trade Only Maintains Current Tariff Rules

Posted Date: 20-January-2021

With the coming of the new year, the United Kingdom is no longer a member of the European Union and, by extension, no longer included under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

To ensure the continuity of Canada-U.K. trade – which is particularly important for the economic recovery of both jurisdictions from the COVID-19 pandemic – our two governments in late November 2020 announced the conclusion of a Canada-United Kingdom Trade Continuity Agreement – an interim deal that will be in place as Canada and the U.K. work towards negotiating a further comprehensive free trade agreement.

As CETA no longer applies to the U.K., this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the U.K. This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the U.K. market.

However, Canadian Exporters to the UK MUST TAKE NOTE:
Canadian companies exporting cosmetic products to the U.K. (or having its “responsible person” resident in the U.K.) NEED TO TAKE NOTE of the new regulatory requirements that are in effect.

Although the Canada-U.K. temporary trade agreement will keep in place the current tariff benefits of the Canada-E.U. Trade Agreement (CETA), the UK will NO LONGER be included in the EU regulatory regime. Consequently, the following regulatory requirements should be noted and confirmed with your regulatory specialist for the UK as to how they can affect your business and how to comply:
• The UK Cosmetic Regulation came into effect on January 1st, 2021.
• A certain “grace” period for products already on the UK market will be provided as long as the product currently complies with the EU cosmetic regulation. However, the exporter will need as of January 1st a “responsible person” based in the UK. If the company’s “responsible person” is currently resident elsewhere in the EU, a new UK based responsible person will have to be established.
• Conversely, if a company’s “responsible person” for the EU is currently based in the UK, a new “responsible person” will have to be named for the EU who is resident in the EU if the company wishes to continue exporting to the EU. (IMPORTANT to NOTE to AVOID SURPRISES)
• Required company name and address information must be on both the primary and secondary packaging and can be stickered or over-labelled to comply.
• Electronic Notification is available as of January 1st, 2021.
• If product is currently on the market in the UK (for which a company must have proof that it was purchased by distributors, retailers etc. prior to January 1st, 2021), it can remain on the market without notification for up to two years. If not, it is required that a cosmetic product notification be submitted at www.gov.uk – search “cosmetic notification” and set up an account.

Cosmetics Alliance Canada is working with our colleagues at the UK industry association (CPTA) to share information on these Brexit related changes that can affect our respective members who do business in both Canada and the UK.